Metro's profit increases despite decline in food prices

Metro was able to increase its profit and beat analyst estimates for the second quarter, despite an overall decline in Canadian food prices.

The Montreal-based grocery company had $132.4 million of net income in its fiscal second quarter, equal to 56 cents per share.

That was three cents above analyst estimates of 53 cents per share, according to Thomson Reuters data, and up from $124.9 million or 51 cents per share in the comparable period last year.

Revenue was $2.9 billion, up less than a percentage point from $2.88 billion a year earlier, but in line with analyst estimates.

Metro says its second-quarter revenue was limited by a decrease in food prices over recent months, but it was able to lower operating expenses as a percentage of sales.